Inflation is often regarded as a never-ending process due to the cyclical nature it exhibits. When prices rise, wages are adjusted to compensate, leading to increased production costs. As a result, businesses increase prices further to maintain their profit margins, creating a continuous cycle of rising prices. Additionally, governments may intentionally induce inflation as a monetary policy tool to stimulate economic growth, making it difficult for inflation to completely cease. Such factors contribute to the perception that inflation is an ongoing phenomenon rather than a temporary occurrence.
Inflation is regarded as a never-ending process due to its inherent nature of continuous and sustained increases in the general price level of goods and services over time. It occurs when there is an excess of money supply in circulation relative to the available goods and services in an economy. When prices rise, it reduces the purchasing power of currency, leading individuals and businesses to demand higher wages and prices, thereby creating a cyclical effect. This continuous cycle of price increases and rising wages can create an environment where inflation persists, making it an ongoing process.
